Sweet news for American CEOs. Their average pay was up 27 percent last year to $11 million-plus. Average American wage-earner: not so lucky. Their pay was down last year, after inflation. And pensions? More rare and vulnerable than ever.
Most workers don't have them. And many corporations that have promised pensions are now trying to walk away. Huge companies have paid their management well, but not put enough aside to cover pension promises.
Now those huge obligations are being dumped on the federal agency charged with backstopping pensions. And may someday be dumped on you. The agency's chief says the system is fundamentally flawed, and he's quitting.
Hear the exit interview with Bradley Belt on American pensions in trouble.
Bradley Belt, former executive director of the Pension Benefit Guaranty Corp
Zvi Bodie, Professor of Finance and Economics at Boston University School of Management.
This program aired on April 10, 2006.